Impact of External Environment Factors on Human Resource Management Function, a Generic Model study with reference to Multi-National Companies in India

Abstract

In this paper ,we explore models of  environmental analysis, organizational design and HR strategy. Thus the theme , is the interaction between human resource management (HRM), the environment and the organization (MNC in India) . The theoretical underpinning for this approach is the best-fit or contingency model of HR strategy, This model argues that there is no one model of HR strategy which suits all circumstances. Instead, different strategies are appropriate in different environmental and organizational settings. However we should bear  in mind that the best-fit model is not the only model of HR strategy. Other models include the best practice model, which argues that there is one approach to HR strategy; the high performance workplace model, which is suitable in nearly all organizational and environmental settings; and the resource-based model, which argues that resources, particularly human capital and core  competencies, are much more important for HR strategy than the environment.